McFarlane Toys has been acquired by Gladstone Investment Corporation, a publicly traded investment company that also owns the producer of the hit squishy line NeeDohs. Gladstone acquired a majority share of the company, leaving current owners, founder Todd McFarlane and co-owner Stephan Tetrault, as “meaningful shareholders,” according to the announcement. McFarlane and Tetrault are expected to remain actively involved with the company.
The acquisition was funded by debt and equity financing from Gladstone. Investment into the company will be used to support product innovation, expansion into new collectible categories, development of strategic licensing partnerships and global growth. The acquisition fits Gladstone’s strategy of investing in lower middle market companies owned by founders or management. Gladstone’s portfolio also includes Schylling, Inc. which is the producer of the NeeDohs line, described by a retailer in an ICv2 Vibe Check last summer as “absolute fire” (see “Vibe Check: Little Shop of Magic“).
Co-owner Stephan Tetrault is now CEO of McFarlane Toys. As of September, when the company brought in a new President from James Cameron;s Lightstorm Entertainment (see “McFarlane Brings in President”), McFarlane was CEO. Based on timing, these management moves appear tied to the buyout. Tetrault is also owner of EB Games Canada, which he acquired as GameStop Canada last year (see “McFarlane Toys Co-Owner Buys GameStop Canada“).
“Our partnership with Gladstone represents an exciting opportunity to accelerate our growth, expand our global reach, and continue diversifying our product portfolio,” Tetrault said in a statement accompanying the announcement. “With Todd’s creative vision, our talented team, and Gladstone’s experience and resources, we are exceptionally well positioned for the next chapter of McFarlane Toys.”
McFarlane stressed the company’s ongoing fealty to core principles. “When I started McFarlane Toys, the goal was to give fans and collectors products with a level of detail and creativity that stood apart,” he said. “That commitment remains at the heart of our business.” McFarlane spoke at the ICv2 Insider Talks last year on his career and the demands of entrepreneurship (see “McFarlane on the Creator as Brand“).
Source: ICv2
